Life Settlements - FREQUENTLY ASKED QUESTIONS

 

Is there a difference between a broker and a provider representative?
Yes. Although both a broker and a provider representative will help you with the sale of your policy, there are important differences between them. A broker works for you. A broker will check with several providers to find the best offer for you. A provider representative works for a provider. A provider representative will only check with the provider that he or she works with to get you their offer. If you use someone to help with the sale of your policy, you may want to ask whether they are a broker or a provider representative.

Is the provider, provider representative, or broker required to keep my information confidential?
Yes, any financial, medical, or personal information obtained by a provider, provider representative, or broker about you, including your family members, a spouse, or a significant other, may not be shared with anyone unless you have given written approval that the information may be shared. Any written approval for the sharing of this information must show who may get the information and why it will be released.

If I enter a life settlement contract, when will I get my money and from whom?
The answer to this question depends on how the provider runs its business. Some providers use an escrow agent or trustee to handle the money that will be paid to you. The escrow agent or trustee will send you the money within three business days of the date the insurance company confirms to the provider that the transfer of ownership has been completed.

What if I change my mind?
If you change your mind about selling your policy, you can cancel the life settlement contract at any time up to the 15th day (30 days in some states) after you receive the money from the provider. If you change your mind, remember to arrange with the provider to have the insurance company transfer the ownership of the policy back to you.  The guidelines for the rescission period will be explained in detail in the Life Settlement Purchase & Sale Agreement, which can vary on a state by state basis.  

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